Question: Step by step with formulas I. A 30-year Treasury bond carries coupon rate of 8% (paid semi-annually), and discount rate is 12%. (i) Find the

Step by step with formulas Step by step with formulas I. A 30-year Treasury bond carries

I. A 30-year Treasury bond carries coupon rate of 8% (paid semi-annually), and discount rate is 12%. (i) Find the bond price. (ii) What would be the bond price if discount rate is 14%? (iii) What would be the bond price if discount rate is 10%? 2. A 10-year Treasury bond carries coupon rate of 8%, and discount rate is 12%. (i) Find the bond price. (ii) What would be the bond price if discount rate goes up by 2%? (iii) What would be the bond price if discount rate goes down by 2%

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